A Vision for a Heathy Transatlantic Defense Industry

Lockheed Martin advocates an open and competitive transatlantic marketplace based on two fundamental principles: (1) transparent and equitable rules of the game, and (2) transatlantic industrial cooperation, bringing the best industry can offer to government customers. We believe that transatlantic industrial cooperation is essential for both strong security cooperation among governments and a healthy industry on both sides of the Atlantic.

How do we make our vision a reality? We believe we must focus on four areas.

1. Governmental Cooperation. Governments must cooperate on three key issues: harmonizing military requirements, jointly developing and procuring systems, and training and operating together to provide effective security capability at prices the governments are willing to pay.

2. Defense Trade Barriers. No government, not even the U.S. government, can afford to go it alone in the defense area. While a "Fortress Europe" might be appealing in the short run, a protected but still undernourished industry would, in the not very long run, become a weaker industry, unable to compete in world markets, and, because of its lack of competitiveness, become cut off from access to the United States market.

3. Procurement Priorities. The capabilities required in the future, as we have recently seen in Iraq, require investment in networking and information handling, finding and striking targets with precision, the defense of deployed forces from all aspects of attack, and sustaining those forces (that is, with airlifts and logistics).

4. Research and Development. European industry leaders have recently called for more resources for R & D as well as overall defense spending. They do so in order to be able to provide capabilities like those we have just discussed. We support their request, but we must face the fact that it is unlikely that Europe will generate the levels of spending needed. For that reason, we believe a more cooperative and integrative approach to the market is the best solution for all.

Lockheed Martin is backing up its position with the following actions:

The Lockheed Martin-led F-35 JSF program. This is the first global fighter program involving the U.S. plus eight other nations.

Other initiatives, including the C-27J light airlifter with Alenia; the U.S.-101 Helicopter Program with Agusta Westland, Bell, and Lockheed Martin; and our ILS launch vehicle joint venture with Khrunichev in Russia that offers both the Atlas and Proton rockets for the commercial market. Lockheed Martin uses the RD180 Russian rocket engine in our Atlas V launch vehicles for the U.S. Air Force.

We are also teamed with EADS and Finmeccanica on the MEADS missile defense program, and have formed a consortium with Izar of Spain and Kongsberg of Norway to bring the Aegis combat system to the world naval marketplace.

In short, we clearly understand the need for American companies to bring world-class European technologies and affordable products to the U.S. marketplace. Conversely, we look to European governments and companies to avoid the temptation of protectionism in favor of open competitions that result in enabling NATO, EU, and Russian militaries to have the most effective and affordable capabilities that are possible.